By How much does salary packaging increase take home pay?
That’s right, you can actually increase your take home pay with salary packaging and at SDP we are currently offering salary packaging at fees from 1%….The proof is in the figures…
| Description | With Salary Packaging | Without Salary Packaging |
|---|---|---|
| Net take home inc packaged expenses | $95,540.54 | $77,759.49 |
How do I calculate my salary package?
How to Calculate your Take-Home Salary?
- In order to calculate your Take-Home Salary or Net Salary, follow these steps:
- Gross Salary= Basic Salary + HRA + Other Allowances.
- Alternatively,
- Gross Salary= CTC – (EPF + Gratuity)
- Taxable Income = Income (Gross Salary + other income) – Deductions.
What is PBI salary packaging?
PBI employers. Salary packaging is an Australian Taxation Office (ATO) approved method of paying your employee’s remuneration package in a combination of cash salary and non-cash benefits, such as cars, living expenses, professional membership fees and extra superannuation.
What is salary packaging NSW?
Salary packaging allows you to receive part of your pre-tax remuneration in the form of benefits rather than receiving it all in salary. Salary packaging restructures the way in which you receive income, which may maximise disposable income.
What is the formula of basic salary?
The excel formula for calculating salary is given by the equation: Salary = Basic + HRA + Transport Allowance + FBP Allowance + Bonus – Provident Fund – Income Tax – Insurance.
What is Package salary?
It refers to the total salary package of the employee. CTC is inclusive of monthly components such as basic pay, various allowances, reimbursements, etc. and annual components such as gratuity, annual variable pay, annual bonus, etc. CTC is never equal to the amount of take-home salary of the employee.
What is tax free salary?
# Salary paid tax free – Tax free salary means the salary on which income tax is borne not by the employee but by the employer. Tax free salary is also taxable in the hands of the employee. Salary is taxable in the year of receipt or in the year of earning of the salary income, whichever is earlier.
How much can you salary package per year?
Salary packaging the maximum amount allowed each Fringe Benefits Tax (FBT) year means you’re making the most of this employee benefit. The maximum for employees of not-for-profit organisations is $15,900 (this is also known as your ‘tax free cap’) and $9,010 for hospital and healthcare employees.
Is salary packaging a good idea?
You can benefit as you may pay less income tax. You need to arrange your salary package before you get paid. You can’t package your salary after you’ve earned it. Salary packaging is usually more effective for people on middle to high incomes.
Who is eligible for salary packaging?
Anyone who is employed, and has approval, is able to salary package and potentially save thousands of dollars each year. Instead of receiving a gross income, on which income tax is payable, employees can choose to take part of their pay in some other form of benefits before income tax is applied.
How does salary packaging work for NSW Health?
If you work for another local health district or specialty network, please contact your salary packaging administrator. Salary packaging is a simple way for eligible NSW Health employees to increase their take home pay by reducing their taxable income and therefore the amount of tax they pay.
How much is the cost of salary packaging?
All calculations use PAYG tax rates effective 1 July 2020. Tax, benefit & Medicare levy calculations are approximate, and assumes no other taxable income is received. HECS/HELP repayments and taxation surcharges are excluded. An indicative average salary packaging administration fee of $220.00 has been included.
How to package your salary at Northern Health?
• As an employee of Northern Health you are able to package up to 100% of your Base Salary to Exempt Benefits. Bank Details (please complete the banking details you would like your Salary Packaging reimbursement deposited into each fortnight) . Account Name: BSB: Account Number (maximum 6 digits) ( maximum 9 digits) Reference: (if required) $
Where to get financial advice for salary packaging?
Before signing a salary packaging agreement, you are strongly advised to obtain independent financial advice. The information for financial advisors page has been developed to assist financial advisors. Contact the Employee Benefits team on 8848 5111 or [email protected].